Summary
Ford Motor Company's third quarter 2018 report shows a mixed financial performance. While total revenues saw an increase to $37.7 billion from $36.5 billion in the prior year's third quarter, driven by strong automotive sales in North America, net income attributable to Ford Motor Company decreased to $991 million from $1,572 million in the prior year. This decline is largely attributed to higher interest expenses on automotive debt and a significant decrease in other income, net. The Ford Credit segment, however, continued to perform well, demonstrating resilience with strong earnings, supported by favorable lease residuals and healthy consumer credit metrics. The company is strategically shifting its focus towards trucks, utilities, and vans, which are more profitable, particularly in North America, while navigating economic challenges in markets like South America and strategically addressing the competitive landscape in China. Investments in the growing Mobility segment are ongoing, contributing to segment losses but reflecting the company's long-term vision. Looking ahead, Ford maintains a strong liquidity position with $36.5 billion in total cash, cash equivalents, marketable securities, and restricted cash. The company reaffirmed its full-year adjusted earnings per share guidance of $1.30 to $1.50, signaling confidence in its operational strategies despite the quarterly earnings dip. Key areas of focus include managing structural costs, optimizing production capacity, and adapting to evolving market demands, particularly the growth in SUVs and trucks. Investors should monitor the company's progress in its strategic transformation, especially in international markets, and its ability to leverage its strong North American performance to offset challenges elsewhere.
Financial Highlights
51 data points| Revenue | $37.67B |
| Cost of Revenue | $31.57B |
| Gross Profit | $6.10B |
| SG&A Expenses | $2.88B |
| Operating Expenses | $36.80B |
| Operating Income | $864.00M |
| Net Income | $991.00M |
| EPS (Basic) | $0.25 |
| EPS (Diluted) | $0.25 |
| Shares Outstanding (Basic) | 3.98B |
| Shares Outstanding (Diluted) | 4.00B |
Key Highlights
- 1Total revenues increased by 3.3% year-over-year to $37.7 billion in the third quarter of 2018.
- 2Net income attributable to Ford Motor Company decreased by 37.0% to $991 million in the third quarter of 2018 compared to $1,572 million in the prior year.
- 3Ford Credit reported strong performance, with its best quarter in over 7 years, driven by favorable lease residuals and healthy consumer credit metrics.
- 4Automotive segment EBIT margin in North America reached nearly 9%, driven by a strong mix of trucks, utilities, and vans, despite lower volume and higher commodity costs.
- 5The Mobility segment continues to incur losses, reflecting ongoing investments in autonomous vehicles and mobility services.
- 6The company ended the quarter with a strong liquidity position of $36.5 billion in cash, cash equivalents, marketable securities, and restricted cash.
- 7Ford reaffirmed its full-year 2018 adjusted earnings per share guidance of $1.30 to $1.50.